In the aftermath of this Keiko Kawamura “hedge fund”/subscription site scam, I have been pondering the purpose and value of subscription based services.
Clearly, with this nonsense being unearthed, anyone with a heartbeat and an internet connection can create a fake track record, acquire a bunch of followers based on this false track record and get people to pay them $175 a month for access to their “real-time” trades.
I suppose being a cute 20-something Hawaiian girl doesn’t hurt.
A few of the people I follow on Twitter posted links to several of her “webinars” last evening, and I was throwing up in my mouth after listening to 2 minutes of her drivel.
Allow me to digress for a moment…for example, she states (I’m paraphrasing here): ‘Guys, you can literally, like (sic), drive yourself crazy looking at charts all night and start to see patterns that really aren’t there’. Um, sure, there is some truth to that. There is also a lot of truth to the fact that stock charts represent a visual representation of human behavior in a marketplace. Humans also tend to devolve to more base instincts and repeat behaviors in a predictable manner over time in emotionally charged environments (i.e., the stock exchange).
This is how I utilize pattern recognition as a primary source of analysis in my trading. The patterns I see are patterns that I have noticed on charts for as long as I have been trading…and I presume they have existed long before I was even born. Of course they are not right all of the time, but they do give me an edge, one that I can combine with strict risk management protocol to provide a foundation for my trading strategy. </rant>
I feel bad for the people she ripped off, mostly because I feel like they did not know any better. They were looking to make money and thought that this cute girl had an amazing talent as a trader and could help them make money in the market.
They were duped.
Why someone would spend $175 a month on a service and not want to see some tangible results over a significant period of time prior to forking over their (presumably) hard earned money, is beyond me. Also, by paying $175/month, what were they receiving? After watching two minutes of one of Ms. Kawamura’s videos, clearly it was not an education.
Do people join subscription services like this merely to be spoon fed trades that are going to generate (alleged) absurd returns?
If you are thinking about joining a subscription service, here is a good bullshit indicator: if someone is purporting to be able to generate ridiculous profits (800+% in this case) in the stock market, they are lying. If you are paying that person for their “guidance”, they are going to steal your money. Additionally, they are going to provide no sort of educational content nor actionable trading ideas. It is that simple.
You have $175/month to spend on that tripe; therefore you clearly you have the mental capacity to make enough money to support that habit…use your fucking head.
I have long thought about starting my own subscription based service. No, I am not joking. This nonsense has given me extra incentive to bring those ideas to fruition.
I manage two actively traded portfolios, write my thoughts on my trades and the market on this blog relatively frequently, and conduct many hours of research all while ‘earning a living’ working 40 hours a week as a civil engineer. Hell, I could spend 20 hours a day talking about and researching trading opportunities in the stock market.
I know, I know: “if you are so good at trading, then why do you need to hock a subscription based service?” That is a legitimate question and a polarizing topic.
I look at it like this: I don’t have enough time in my day to spend on R&D. I can manage my portfolios and find a few good ideas in the limited time that I do have. If I can expand upon the time I spend doing research and collaborating with/mentoring novice and intermediate level traders on the fundamentals of trading and risk management, it is a win/win for everyone.
Let’s be honest, shall we? My trading accounts cannot (and will never) provide for my families living expenses. I guess that does not make me a “professional” in the classic sense, but I put in as much, if not more time every week into the market than I do ‘actual’ work. Thus, while I may not make my living from the stock market, I certainly approach it as if I do. It is a labor of love.
I have grown weary of seeing people ripped off by internet snake oil salesmen (or saleswomen, as it were), and seek to provide a juxtaposition to that nonsense.
Look, you can read through the archives of this blog and see that I am not one to bullshit you, my dear reader (no patronizing). My goal here is to help traders, provide information and entertain, all of which helps me become a better trader. I am transparent…probably to a fault when desiring to undertake this sort of venture and thus can provide a service that is the polar opposite, in every way, to what Ms. Kawamura was providing, for a fraction of the price.
I am not ready to “go live” with this venture, but the wheels are in motion. Hate on me if you must, but this train is building momentum and I have no intention on hitting the brakes.
More on this to come.